Investing.com - The pound hit a one-month low against the U.S. dollar on Tuesday, after the International Monetary Fund cut U.K. growth forecasts, while weak U.K. economic data also weighed.
GBP/USD hit 1.6003 during European morning trade, the pair’s lowest since September 11; the pair subsequently consolidated at 1.6008, slipping 0.11%.
Cable was likely to find support at 1.5958, the low of September 9 and resistance at 1.6082, the high of September 11.
The IMF said that the U.K. economy would contract by 0.4% this year before recovering to 1.1% growth in 2013, compared to its July forecast for 0.2% growth this year and 1.4% growth in 2013.
Sterling remained under pressure after the Office for National Statistics said manufacturing production in the U.K. fell by 1.1% in August, compared to expectations for a 0.6% drop.
The ONS said industrial production declined 0.5% in August, in line with expectations.
A separate report showed that the U.K. trade deficit widened to GBP9.8 billion in August, against expectations for a deficit of GBP8.5 billion.
Investors also remained cautious as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
The pound was higher against the euro, with EUR/GBP down 0.22% to 0.8074.
Later in the day, German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders, while finance ministers from the European Union were to hold a day of talks in Brussels.
Also Tuesday, European Central Bank President Mario Draghi was to testify to the European Parliament, and the International Monetary Fund and world central bank leaders were to continue talks in Tokyo.
GBP/USD hit 1.6003 during European morning trade, the pair’s lowest since September 11; the pair subsequently consolidated at 1.6008, slipping 0.11%.
Cable was likely to find support at 1.5958, the low of September 9 and resistance at 1.6082, the high of September 11.
The IMF said that the U.K. economy would contract by 0.4% this year before recovering to 1.1% growth in 2013, compared to its July forecast for 0.2% growth this year and 1.4% growth in 2013.
Sterling remained under pressure after the Office for National Statistics said manufacturing production in the U.K. fell by 1.1% in August, compared to expectations for a 0.6% drop.
The ONS said industrial production declined 0.5% in August, in line with expectations.
A separate report showed that the U.K. trade deficit widened to GBP9.8 billion in August, against expectations for a deficit of GBP8.5 billion.
Investors also remained cautious as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
The pound was higher against the euro, with EUR/GBP down 0.22% to 0.8074.
Later in the day, German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders, while finance ministers from the European Union were to hold a day of talks in Brussels.
Also Tuesday, European Central Bank President Mario Draghi was to testify to the European Parliament, and the International Monetary Fund and world central bank leaders were to continue talks in Tokyo.